Revenue Recognition

6 Months Ended

Jun. 29, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

Deferred contract assets and deferred contract liabilities are included in the condensed consolidated balance sheets as

follows (in thousands):

	June 29, 2024	December 30, 2023
Deferred contract assets included in:
Other current assets	$29,771	$28,567
Other non-current assets	52,312	54,795
	$82,083	$83,362

	June 29, 2024	December 30, 2023
Deferred contract liabilities included in:
Other current liabilities	$37,720	$36,421
Other non-current liabilities	65,362	69,098
	$103,082	$105,519

Deferred revenue and costs related to SleepIQ® technology are currently recognized on a straight-line basis over the

product's estimated life of 4.5 to 5.0 years because the Company’s inputs are generally expended evenly throughout the

performance period. During both the three months ended June 29, 2024 and July 1, 2023, the Company recognized

revenue of $10 million, that was included in the deferred contract liability balances at the beginning of the respective

periods. During both the six months ended June 29, 2024 and July 1, 2023, the Company recognized revenue of $19

million, that was included in the deferred contract liability balances at the beginning of the respective periods.

Revenue from goods and services transferred to customers at a point in time accounted for approximately 98% of

revenues for both the three and six months ended June 29, 2024 and July 1, 2023.

Net sales were as follows (in thousands):

	Three Months Ended		Six Months Ended
	June 29, 2024	July 1, 2023	June 29, 2024	July 1, 2023
Retail stores	$358,584	$402,145	$773,339	$860,808
Online, phone, chat and other	49,829	56,644	105,523	124,508
Total Company	$408,413	$458,789	$878,862	$985,316

Obligation for Sales Returns

The activity in the sales returns liability account was as follows (in thousands):

	Six Months Ended
	June 29, 2024	July 1, 2023
Balance at beginning of year	$22,402	$25,594
Additions that reduce net sales	46,664	57,849
Deductions from reserves	(48,535)	(57,967)
Balance at end of period	$20,531	$25,476